The Opportunity Costs of Informal Elder-Care in the United States: New Estimates from the American Time Use Survey

ObjectivesTo provide nationally representative estimates of the opportunity costs of informal elder-care in the United States. Data SourcesData from the 2011 and 2012 American Time Use Survey. Study DesignWage is used as the measure of an individual's value of time (opportunity cost), with wages being imputed for nonworking individuals using a selection-corrected regression methodology. Principal FindingsThe total opportunity costs of informal elder-care amount to $522billion annually, while the costs of replacing this care by unskilled and skilled paid care are $221billion and $642billion, respectively. ConclusionsInformal caregiving remains a significant phenomenon in the United States with a high opportunity cost, although it remains more economical (in the aggregate) than skilled paid care.